China EU Photo:VCG

China's Ministry of Commerce (MOFCOM) said in a notice on Thursday that it determined that brandy from the EU has been dumped in the Chinese market, posing a threat to the domestic brandy industry.

It also found that there is a causal relationship between the dumping practice and the threat of substantial harm, the MOFCOM said in the notice on its official website.

Provisional anti-dumping measures will not be implemented in this case for now, according to the notice. 

Chinese experts said the probe complies with Chinese law and WTO rules, while the initial decision takes into account the overall China-EU economic and trade relationship, creating a relatively favorable atmosphere for the ongoing consultations over the EU's tariffs on Chinese electric vehicles (EVs), and the EU should cherish China's sincerity.  

The decision not to impose provisional anti-dumping measures reflects a consideration of the overall economic and trade relationship with the EU. It is hoped that the EU will handle relevant trade friction in a compliant manner, Cui Hongjian, a professor at the Academy of Regional and Global Governance with Beijing Foreign Studies University, told the Global Times on Thursday.

While no measures are being taken now, China reserves the right to take further action if necessary, Cui said.

From the beginning, China has adhered to WTO procedures in addressing trade disputes with the EU. The investigation was initiated at the request of the domestic industry and conducted in line with WTO practices. This stands in contrast to the unilateral trade protectionism measures taken by the EU against some Chinese industries, Cui noted.

China's anti-dumping investigation into brandy from the EU, prompted by a complaint from the domestic brandy industry, neither targets any specific EU member state nor carries predefined findings, said China's Minister of Commerce Wang Wentao in April.

China will conduct the investigation openly and transparently in accordance with Chinese law and WTO rules, while fully safeguarding the rights of all stakeholders, added the minister.

The MOFCOM held an anti-dumping hearing on imported EU brandy on July 18, 2024 which covered industrial damage, cause and effect, and public interest in the anti-dumping probe of related brandy products. It aims to ensure that the investigation procedure is fair, just and transparent, the ministry said.

China started the anti-dumping investigation on January 5, following a request from the China Alcoholic Drinks Association on behalf of the domestic industry. The probe is expected to end before January 5, 2025, but may be extended for half a year under special circumstances, according to the MOFCOM.